Offshore oil and gas-focused engineering and construction firm, McDermott International (MDR) reported third-quarter 2014 loss of 14 cents per share, wider than the Zacks Consensus Estimate of loss of 10 cents. The bottom line, however, came narrower than the year-ago loss of 27 cents as operating expenses were much lower.
McDermott generated revenues of $414.6 million in the quarter, down almost 40% from the third quarter of 2013. The top line also failed to beat the Zacks Consensus Estimate of $726 million. Decreased project activities hampered the results.
Total Expenses
Total costs and expenses decreased 42% to $425.3 million from the year-ago quarter.
Backlog
At the end of the third quarter, McDermott had a backlog of $3,979.7 million, down from $4,610.7 million a year ago.
Balance Sheet
Capital expenditure for McDermott during the quarter was $61.6 million. As of Sep 30, 2014, McDermott had cash and cash equivalents of $644 million and long-term debt (including current maturities) of approximately $900.3 million (representing a debt-to-capitalization ratio of approximately 36.2%).
Zacks Rank & Other Picks
Incorporated in 1959, Houston, TX-based McDermott currently carries a Zacks Rank #4 (Sell), implying that it will underperform the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like Petrobras Argentina SA (PZE), Murphy USA Inc. (MUSA) and Braskem S.A. (BAK). All these stocks sport a Zacks Rank #1 (Strong Buy).
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